Twist in stake ownership of ex-Shell oil block hobbling investor, host communities
Fresh confusion brewing between the new investor in Oil Mining Lease 42, Neconde Energy Ltd and communities in the Gbaramatu district, Delta State over claims by the hosts that before Royal Dutch Shell Plc sold its share to the block six years ago, it promised communities five per cent share.
The company after the sale, owns 45 percent of the block, while NNPC holds the rest. It produces 10,000 barrels of crude a day, according to Neconde’s website.
In a statement, the communities in the Gbaramatu district, southern oil town of Warri, want 5 percent of a lease owned by the Lagos-based Neconde Energy Ltd. and state-owned Nigerian National Petroleum Corp.
Momotimi Guwor, a spokesman for the communities, averred that “Neconde refused to fulfil the 5 percent equity share to the host communities, whose environment has been negatively impacted and devastated by oil activities, destroying our age-long traditional fishing business”.
But in swift response, the company, Neconde denied any deal existed with the communities insisting that it had met all its obligations. The company owns 45 percent of the block, called Oil Mining Lease 42, while NNPC holds the rest. It produces 10,000 barrels of crude a day, according to Neconde’s website.
The company’s Chief Operating Officer, Olajide Ishola argued that “There was no five percent agreement consummated with the host communities as Shell sold its equity shares and we bought them,” but was quick to note that “We will engage the communities, discuss and reach a compromise.”
According to the statement issued by the group and signed by Momotimi Guwor, Neconde Energy Limited has until end of this month to address their demands of five percent equity share they reached with Shell before the transfer of ownership.
